Operator: Welcome to the Q1 2013 ConocoPhillips' Earnings Conference Call. My name is Christine, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.

I will now turn the call over to Ellen DeSanctis, Vice President, Investor Relations and Communications. You may begin.

Ellen R. DeSanctis - VP, IR and Communications: Thank you, Christine, and thank you to all of our listeners for joining this earnings call today. As usually, we'll review the results for the past quarter and we'll provide quite a bit of outlook for the coming quarters this year. It's a big year as I think you all know and appreciate.

With me for today's call are Jeff Sheets, our Executive Vice President of Finance and our Chief Financial Officer and Matt Fox, our Executive Vice President or Exploration and Production.

Before I turn the call over to Jeff, let me make just a few administrative points here. As a reminder, in late February, we hosted our first ever Analyst Meeting as an independent Company and at that meeting we presented a lot of detail about our future plans and our milestones. We had a great response to you then which we appreciate. And today you'll hear that our performance and our plans are tracking the expectations we laid out there overall. The material for that meeting including a transcript of that call is still available from our website and that's also where you'll find the materials for today's presentation.

One other kind of quick administrative matter. Except as noted, today's comments as we go through the presentation will address the Company's performance on a continuing operations basis and that is, net of the results for the settled properties that we've previously reported as discontinued operations. So, just listen for that. We know the models have a mix of conventions and so we want to be clear about the convention we plan to follow today.

If you'll turn to Page 2, you'll find our Safe Harbor slide. We will make some forward-looking statements today and of course, our actual results could differ. The risks in our future performance have been outlined and described on this Safe Harbor statement and in our periodic filings with the SEC, including our recently filed Form 10-K.

With that, it's my pleasure to turn the call over to Jeff. Jeff?

Jeff W. Sheets - EVP, Finance and CFO: Thank you, Ellen, and good afternoon, everyone, and thanks for taking the time to join us on our call today. I will begin my comments on Slide 3 and cover some of the key first quarter highlights. Strategically, we continue to make good progress on our announced asset sales. In the first quarter, we closed the Cedar Creek Anticline transaction and some small asset sales which generated total proceeds of about $1.1 billion. We're also making progress in our sales of our Algeria, Nigeria and Kashagan assets and anticipate closing those in 2013.

At the same time as we work to monetize this non-core nonstrategic assets in our portfolio, we continue to add assets which will allow us to sustain our long-term growth. We added acreage in our deepwater Gulf of Mexico position and continue to make selective entries into new exploration plays globally. Matt is going to provide more information about our investment programs during his comments later in the call.

Transcript Call Date 04/25/2013

Operator: Faisel Khan, Citigroup.

Faisel Khan - Citigroup: I was just wondering if you could give us an exit rate in the quarter for the Eagle Ford.

Matt Fox - EVP, Exploration and Production: The exit rate was about 110,000 BOE per day, and we're continuing to grow production. I think we had a new peak production on Monday of 116,000 BOE per day in the Eagle Ford.

Faisel Khan - Citigroup: And where do you kind of see this going towards the end of the year?

Matt Fox - EVP, Exploration and Production: Right now, in the Eagle Ford we're on a pretty linear growth trend and we see that continuing essentially as we go through the year.

Faisel Khan - Citigroup: Then on the recent change in the legislation in Alaska on the progressive tax. What do you mean – you said you're going to add a rig to Alaska. What's the current thinking now with the new tax regime in place?

Matt Fox - EVP, Exploration and Production: So, we're encouraged by the changes to the regime. We've been advocating this for some time, and the change will encourage additional investment in Alaska. We were looking at that. We've got a long list of projects that we are evaluating now, and we did announce that we are immediately starting to increase with this new rig that we're bringing in. That rig is going to focus on working over existing wells and adding production that way. But we do have quite a few capital projects that we are now evaluating the impacts of the fiscal regime on.

Faisel Khan - Citigroup: So, on Alaska, you guys laid out, I guess, a production sort of decline in Alaska over the course of this year. Does this rig and the new activity sort of mitigate that decline rate and by how much?

Matt Fox - EVP, Exploration and Production: You won't really see any significant change in the short-term. But the issue is that given the new fiscal regime, our incremental capital investments were not competitive. And we think they will be, but we're taking that through our overall planning process this year and we will be more equipped to talk about that later in the year.

Operator: Doug Terreson, ISI

Doug Terreson - ISI: In March at the Analyst Meeting, the Company provided a pretty detailed outlook for production and cash margins, and on this point, I think U.S. production from liquids-rich plays rose by over 40% versus the year ago period which is obviously a pretty strong result. But my question is on profitability and specifically whether cash margins in these plays are strengthening as you thought that they might? And also, whether there are any other performance-related factors that are worth mentioning in the Eagle Ford, at the Bakken and the Permian developments that you have underway?

Jeff W. Sheets - EVP, Finance and CFO: Yeah, pretty much. As Matt mentioned, the production is happening pretty much as we expected from all three of the plays; Eagle Ford, the Bakken and the Permian. And production from these is all – well, Eagle Ford is 60% oil and 20% NGLs and 20% gas, so that's really strong cash margins, and Bakken, of course, is mostly oil, and the Permian is again a very favorable mix as well. So cash margins from all these assets are really much higher than the average of our current portfolio. So, as you see the portfolio, you're starting to see that show up now finally in Lower 48 cash margins as that portfolio has moved now towards kind of about half liquids to where it was only 45% a year ago. So, you're starting to see that all across the portfolio. Cash margins have been a little bit hurt in Canada because of the real recent weakness in bitumen prices, but we see that that's going to start to recovering as well. So, overall, it's kind of – Matt was summarizing, we see the trajectory of the growth in production happening as we thought it was going to, and it's that trajectory of growing production that's going to cause – growing the production of entire margin is going to cause cash margin to increase over time. So, production growth is on plan and margin growth is on plan as well.